Getting Vietnam OFF the money laundering "grey list"
Vietnamese Deputy Prime Minister Le Minh Khai has urged drastic measures to remove Vietnam from the FATF's list of jurisdictions under increased monitoring (grey list) within two years.
He said the FATF added Vietnam to its list in June 2023 during a steering committee meeting for money laundering prevention and combat. As a response, the government committed to implementing a two-year action plan recommended by FATF.
The inclusion in this list will cause adverse impacts on Vietnam, especially in terms of economy, trade, investment and international cooperation, he noted. APG has recently collaborated with the State Bank of Vietnam (SBV) and relevant agencies in an effort to remove the country from the grey list.
In order for Vietnam to be removed from the list, numerous solutions are required, including institutional reform, the most complex issue.
Vietnam must take drastic measures to remove itself from the grey list of countries for money laundering: Deputy PM Hinh Anh 2
Deputy Prime Minister Le Minh Khai has called for drastic measures to lift Vietnam off of the Financial Action Task Force's (FATF) list of jurisdictions under increased monitoring within two years. (Photo: VNA)
If Vietnam does not take proactive or effective steps to meet the FATF's requirements, the situation will become even more complicated, according to the Deputy Prime Minister.
SBV, the steering committee's standing body, and related ministries and sectors were asked to complete the work as soon as possible.
SBV Deputy Governor Pham Tien Dung urged ministries and agencies to coordinate with the central bank in response to the FATF's formal inclusion of Vietnam on the grey list.
If Vietnam fails to prove that it cooperates in implementing the FATA's recommendations, it may be listed on the EU's list of high-risk country jurisdictions for money laundering and the FATF's blacklist. As a result, businesses will face serious consequences, such as increased business expenses or even suspension of operations, if that is the case.
Moreover, it will negatively affect Vietnam's external relations and finance-banking systems, as well as its political status and reputation in the international arena.
He went on to say that in October 2023, the FATF also added Vietnam to the list of countries having activities of virtual asset service providers of importance. Consequently, it may request the country to take priority measures to implement a legal framework for combating money laundering through virtual assets.
Nguyen Minh Hang, Deputy Minister of Foreign Affairs, echoed the SBV's sentiments, saying there is still a lot of work ahead to implement the recommendations.
Apart from the FATF's grey list, Vietnam's inclusion in the EU's grey list will also have major ramifications because its trade, financial, and banking relations with EU countries are considerable.
In addition to minimizing risks, Hang suggested Vietnam consider the implementation of commitments to improve regulations and policies, fight corruption and crimes, improve the investment climate, and increase the country's prestige.
Officials discussed the draft national action plan for solving money laundering and terrorist financing risks over the period 2023-2028 at the meeting. As well as implementing the Prime Minister's decision to release a national action plan to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction, they discussed measures for ministries and sectors.
